Manufacturers and distributors were the primary sources of merchandise for retailers before the emergence of the eCommerce business. C&F (clearing and forwarding agencies), distributors, dealers, and retailers no longer have a role in this direct selling procedure because of the proliferation of online shopping stores.
By eliminating these middlemen, eCommerce shipping has grown in leaps and bounds in recent years. It is now a key component of supply chain management. This article will tell you everything you need to know about e-logistics in e-commerce.
What is E-Commerce?
E-Commerce refers to a business where people can buy and sell goods and services via the Internet. Technological devices such as mobile phones, laptops, tablets, etc., can all be used to perform e-commerce in its various forms, which cover four main market areas. It’s possible to buy just about anything you can think of on the internet these days, from books to music to plane tickets to stock trading and online banking.
What is E-Logistics?
Ecommerce logistics services are needed by all types of online enterprises if they want to grow their business. Businesses in the e-commerce industry need more efficient and effective logistics solutions to deal with the ever-increasing volume of clients who prefer shopping online.
Online stores rely on logistics providers for packaging, shipping, and pickup services. Other shipping services are also available, which can help a company grow. You can effectively optimise logistics operations to comprehend the entire supply chain from beginning to end. Companies can hire better logistics providers if they have a better understanding of it.
How Does E-Logistics Work in India?
Here’s how the logistics process for e-commerce businesses in India:
Order fulfilment relies heavily on inventory management, a major component of eCommerce logistics. When you place an order, you want to know that the things you need are in stock and ready to be dispatched immediately. Many warehouse services are offered by logistics organisations, which make it easy for delivery agents to pick up stock. Customers of an eCommerce logistics provider can benefit from comprehensive warehouse and inventory management services provided by the company.
Logistics for e-commerce
These steps include creating an AWB (airway bill) and printing out the shipping label before sending out the order to be delivered. To complete this process, an order must be assigned for pickup. Depending on your eCommerce logistics supplier, the manifestation time can vary greatly. Automating this procedure across numerous logistics providers usually is a time-consuming task. However, ClickPost provides an API that automates all of these tasks.
Storage and Transport of Goods
Your order has been picked up and is on its way to the customer at this point. Although 3PL logistics businesses offer a wide range of services, most of their work is focused on getting the order to its end destination, the consumer. It is common for logistics partners to retain their fleet of trucks, while others may contract out their vehicles to other transportation and trucking companies. Many, such as Blue Dart, provide the option of shipping goods via air. If your online store intends to distribute purchases overseas or across borders, it is imperative that you consider transportation.
2.The Last Mile
Logistics firms’ transportation services include the final leg of the delivery journey, known as the “last mile.” In this section, orders are transferred from storage sites to customers’ doorsteps. The order is picked up from the nearest hub and delivered to the customer by a delivery agent in their vehicle or fleet in last-mile delivery operations. Last-mile delivery is the most expensive part of the supply chain due to all of the issues and difficulties it has to confront.
The last type of delivery exception can benefit from a solid NDR management system maintained by a logistics company. In the event of a failed delivery attempt, ClickPost has an automatic NDR system that sends issue-specific enquiries to consumers. Suppose a delivery effort fails due to a timing issue or an incorrect address. In that case, the right data is promptly collected to maximise the chances of a successful second delivery attempt, thus lowering the number of cancelled RTOs (return-to-origin).
3. Reverse Logistics in E-Commerce
Reverse logistics is just as crucial as forwarding logistics in the delivery process. Reducing returns and managing them so that the online store incurs almost no loss is an important aspect of eCommerce logistics. When it comes to RTOs, reverse logistics is used, although it is mainly for customer-initiated returns. A sound returns management system is like an NDR management system in that it helps you keep track of failed deliveries and ensure that they are completed successfully.
Logistics Challenges Faced by E-Commerce Businesses
Adopting Innovative Technology
The pen-and-paper approach has long dominated the logistics industry in India. ‘Change management’ is the main roadblock new firms face when trying to win customers. When a new process is implemented, the traditional business model and day-to-day activities of a company are significantly altered. The on-the-ground resources are resistant to change and require flexibility in the system.
Adapting to a Customer-Centric Market
E-commerce sectors have moved their attention to profitability rather than inorganic growth as they become more consumer-centric. A competitive moat is being built by e-commerce companies who see logistics as an enabler to meet their customers’ increasing demands and create a fantastic customer experience.
Predictive analytics and data-driven decisions
As a result of the intelligent, informed, and tech-savvy nature of today’s digital consumers, supply chains are becoming more customer-centric. You can’t rely on your intuition in a mission-critical supply chain. Supply chain management can integrate unstructured data using data-driven technologies such as Big Data, IoT, sensor technologies and machine learning to give business intelligence for cautious strategic planning. Improved operational efficiency and effective planning for the future can be achieved through predictive analysis.
Logistics is still plagued by the challenge of delivering goods to the final destination. There has been a paucity of innovation in the logistics industry despite e-commerce forcing a major shift in the use of delivery resources and networks. Numerous participants are already making efforts to improve old processes with technology, but this will not solve long-standing issues like inadequate infrastructure and disorganised truck ownership. The human mind is incapable of comprehending elements such as traffic and order density, as well as commercial limits, which could take days, resulting in inefficiency and eventually reducing customer happiness.
How to Choose a Good E-Logistics Company For Your Business
Here’s how to choose a good E-logistics company for your e-commerce business:
Capacity and Coverage
In terms of capacity and coverage, the demands of various companies vary widely. If you want the finest results, you need to figure out exactly what your needs are in this area. Exactly how much and where are the things that you need to transport? You need to find a logistics company that can satisfy your specific needs.
You also need to find out what kind of customer service the logistics company is willing to supply you. Choosing a 3PL logistics service provider based on their ability to give excellent customer service is one of the most critical factors. With them, it’s going to have a tremendous effect. Unless you undertake extensive research, it will be difficult to grasp the complexities of this topic. An effective problem-solving process should be in place for the firm. Moreover, they must keep open lines of communication open and put customer service above everything else.
Stability and Expertise
The third-party logistics provider’s experience and stability are also crucial factors to consider. Whatever your supply chain’s complexity, it is usually preferable to work with a logistics firm with at least a few years of expertise.
Reliability without sacrificing speed
Customers today are impatient and demanding to the point where they’ve never been before. We had to get dressed and walk to the store to buy anything we needed in the past. The only thing left for us to do is click a button from the comfort of our bed, all from the convenience of home. It is the responsibility of logistics service providers to ensure that e-commerce companies’ promises to make consumption easier become a reality.
Top E-Commerce Logistics Companies in India
Here are the top 10 E-Commerce logistics companies in India:
- Ekart Logistics
- FedEx Logistics Firm
- Aramex Logistics Company
- Shadowfax Company for eCommerce Logistics
- XpressBees Logistics Company
- Safexpress Logistics Firm
- DHL Logistics Company
- BlueDart Logistics Services
- Delhivery eCommerce Logistics
- Ecom Express Logistics Service Provider
Choosing the proper logistics partners might be a simple way to optimise your logistics solutions. This can be a daunting process, as there are more than 150 logistics businesses working in India today. Logistics service providers should be approached on a case-by-case basis, based on a company’s individual needs and requirements. We hope that this article will help you choose the right partner. Click here to learn more about logistics in e-commerce.